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Local Yield Curve Sees Some Budget Relief

SOUTH AFRICA
  • Local yield curve seeing some relief on the back of this budget, with longer-end outperforming. 15y yields on track for a 7bps decline - although still some way to go before the February rally in yields is fully reversed.
  • USD/ZAR stable at the session's lowest levels, but still someway before real support at 18.0421/18.0686 is tested.
  • Faster than expected fiscal consolidation and a clear plan for Eskom debt the clearest drivers, with CDS spreads also coming in, dropping around 2bps off the 273bps high.

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